Key Takeaways:
Multicoin Capital exited its stake in Forward Industries, the largest Solana treasury company, eight months after helping launch its $1.65 billion strategy.
Kyle Samani, who resigned as a manager of Multicoin Capital Management effective Jan. 31 while remaining Forward chairman, accused his former firm in July of "working against everything" Solana developers were building after it backed a policy initiative with the Hyperliquid Policy Center.
The exit moved through a series of transactions. Forward repurchased 6.16 million shares from Multicoin Capital Master Fund on March 19 for $27.37 million, or $4.44 per share, financed by a $40 million Galaxy Digital loan at about 3.4 percent interest. Multicoin then assigned warrants covering 4.46 million shares to Lemmings Holdings LLC on April 30 and transferred 1.78 million common shares on May 5. Lemmings is controlled by Samani.
Forward's balance sheet shows the strain of its Solana bet. Cash fell to about $4.5 million while Galaxy Digital loans reached $120 million, and 4.11 million of its 7.81 million SOL equivalents — about 52.7 percent — were pledged as collateral. The company reported a $69 million quarterly net loss as lower SOL prices weighed on its digital-asset portfolio.
Despite Multicoin's institutional exit, Forward added 508,618 SOL equivalents in its fiscal third quarter ended June 30, lifting holdings to about 7.55 million, then acquired another 254,325 at an average cost of about $75 between July 1 and Aug. 3. SOL traded at $76.12, up 0.95 percent over 24 hours, with a market cap of $44.35 billion, according to CoinGecko.
The company also repurchased more than 2.5 million shares during the quarter and joined the Russell 2000 and Russell 3000 indexes. Chief Investment Officer Ryan Navi said Forward is pursuing diversified yield sources and evaluating acquisitions, including its investment in Solana-based OnRe, seeking US dollar-denominated returns less correlated with SOL.
The financing terms now shape Forward's treasury moves. Galaxy Digital, which helped underwrite the original $1.65 billion launch alongside Multicoin and Jump Crypto, extended the $40 million buyback loan and holds $120 million in total borrowings. With more than half of SOL equivalents pledged, Forward's usable liquidity is constrained even as it continues accumulating.
Multicoin executives have maintained a bullish view on Solana. In June, Jain argued Hyperliquid complements the firm's Solana positions, describing Solana as the home of spot issuance, payments, lending and broader internet capital markets while Hyperliquid serves derivatives trading. The two ecosystems are expected to compete increasingly directly while both outperform much of the broader crypto market.
This article is for informational purposes only and does not constitute investment advice.
